NORTH west developer Langtree Group has been chosen to build a major new business site in East Manchester. It is expected to produce more than 500 jobs over the next three years.

Langtree has been selected for the 6-ha Openshaw Business Centre by government-backed urban New East Manchester, beating short-listed rivals Saville Gordon, Ashtenne, St Modwen, and Imex to redevelop the site at Ashton Old Road, owned by the city council and currently occupied by its public works team.

The existing buildings will make way for a new 16,000-sq m business and enterprise centre. Up to 11,000 sq m will be developed as a speculative first phase.

Tom Russell, chief executive of New East Manchester Ltd, said: ''East Manchester suffers from an acute lack of good quality business accommodation for small and medium-sized businesses. The Langtree proposal demonstrates a real commitment by the private sector to deliver high standard business accommodation on a key site.''

Langtree specialises in small- to medium-sized industrial and office workspace units and currently owns over 350,000 sq m of commercial floorspace throughout the UK.

MD John Downes said: ''This project has attracted keen competition from many well-known names and naturally we are excited that we've been selected to deliver a first-class development which will play a vital role in the future of New East Manchester.''

Accommodation will range from small industrial units of around 100 sq m to units of approximately 1,400 sq m. Work will begin after the Commonwealth Games in August 2002.